The Donor Pipeline: Data Insights and New Strategies from Two Universities Synthia Reader Strategic Leader, Royall & Company Sophia Vandiford Director of Annual Giving, Wittenberg University December 13, 2015

Royall & Company Dedicated exclusively to helping colleges and universities achieve their goals through proven direct marketing strategies Recognized industry leader in: ‒ Enrollment marketing ‒ Financial aid optimization ‒ Alumni fundraising Serving higher education since 1989 Offices in Richmond, VA, and Minneapolis, MN 350+ employees and subject-matter experts Serving 350+ partners in 42 states and the District of Columbia Market-leading outcomes that are statistically based and informed by more than 1 billion student and donor interactions annually

Wittenberg University Private liberal arts institution Located in Springfield, OH ‒ 1,700+ students ‒ 24,000 alumni Established in 1845 Recognition ‒ Top 20: Best Classroom Experience ‒ One of America’s top Green Colleges ‒ Ranked No. 4: Most Accessible Professors ‒ More Ohio Professor of the Year award recipients than any other four-year institution in the state

Alumni Support of Higher Education (in thousands of dollars) Institutions are becoming increasingly dependent on small groups of large donors, and this trend is not sustainable Alumni Giving Rate Alumni Dollars Raised Source: Voluntary Support of Education 2014 Survey

The pipeline for major giving And why the annual fund is critical to sustained success

Where do major donors come from? 1 out of 5 major donors starts with a gift of $25 or less –41% give within a year of graduating –It takes an average of 23.5 years for them to reach their highest level of giving 4 out of 5 donors start with a gift under $5,000 –31% give within a year of graduating –It takes an average of 20.8 years for them to reach their highest level of giving The strength of your pipeline is directly tied to the strength of your annual fund … at all levels

1 out of 5 major donors starts with a gift of $25 or less 41% give within a year of graduating It takes an average of 23.5 years for them to reach their highest level of giving Where do Wittenberg major donors come from? 1 out of 6 Wittenberg major donors starts with a gift of $25 or less 66% give within a year of graduating from Wittenberg It takes an average of 23.8 years for them to reach their highest level of giving to Wittenberg

Where do Wittenberg major donors come from? 4 out of 5 donors start with a gift under $5,000 31% give within a year of graduating It takes an average of 20.8 years for them to reach their highest level of giving 9 out of 10 Wittenberg donors start with a gift under $5,000 46% give within a year of graduating from Wittenberg It takes an average of 20.9 years for them to reach their highest level of giving to Wittenberg

How soon after graduation do future major donors give? Alumni who go on to give $100K+ make their first gift 4.9 years after graduation, on average Those who begin with a gift of $25 or less make that gift 3.1 years after graduation, on average The young alumni experience starts with the student experience, which starts with the recruitment experience Graduation 1 year after graduation 3 years after graduation 10 years after graduation 34% 52% 85% First-Time Givers

Where do future major donors make their first gift?

Getting young alumni involved in philanthropy early is critical, but their behavior is changing % made a gift through a phonathon 11% made a gift through the Web 11% made a gift through direct mail 24% are making a gift through a phonathon 14% are making a gift through the Web 19% are making a gift through direct mail 2015

And it’s not just young alumni – we are seeing the same trend for all donors % made a gift through a phonathon 7% made a gift through the Web 17% made a gift through direct mail 25% are making a gift through a phonathon 13% are making a gift through the Web 33% are making a gift through direct mail 2015

As for Wittenberg, there is no exception to the rule, which has drastically changed the institution’s model % made a gift through a phonathon 10% made a gift through the Web 23% made a gift through direct mail 3% are making a gift through a phonathon 16% are making a gift through the Web 38% are making a gift through direct mail 2015

Case study: How does this data impact Wittenberg’s strategies? Focus on first-year donor retention Upgrades to phonathon (increase over last year, almost twice the revenue from last year) Implementation of strategic Day of Giving to drive incremental success

Strategic programs can also drive incremental growth and education and become a campus-wide effort 20% of donors were new or reactivated lapsed donors 40% of donors were young alumni As many as 20% of all fiscal-year donors gave that day What should you expect from your Day of Giving? 41% of donors were new or reactivated lapsed donors 36% of donors were young alumni 21% of all FY15 annual fund donors gave that day How did Commit to Witt compare?

June 25, 2015 Goal: 300 gifts 616 donor households $90,000 raised Average gift = $145

Key takeaways The industry is changing. A shift to focus on major giving at the expense of annual giving is going to create a ripple effect, which has already started. –Action: Implement strong annual fund strategies that begin cultivating donors NOW. Engaging younger alumni, while challenging, is critical to the future pipeline of the institution. Even small gifts increase the likelihood of future impact. –Action: Examine opportunities to strategically engage/solicit young alumni. Your annual strategy needs to address high-performing channels that address your donor preferences. All channels need to be functioning at capacity. –Action: Identify your channel migration and meet your donors where they are.

Questions? Synthia Reader Sophia Vandiford